The Discount Rate Is the Interest Rate That

question 283

Multiple Choice

The discount rate is the interest rate that

• A)commercial banks charge their customers.
• B)commercial banks charge each other for the loan of reserves.
• C)the Fed charges the government for loans.
• D)the Fed charges commercial banks when it loans reserves to the banks.
• E)the Fed pays commercial banks on their reserves held at the Fed.

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Definitions:

Quantifier-Negation Rule

A principle in formal logic that deals with the relationship between quantifiers and the negation of statements.

Quantifier

A symbol or word in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Negation

The contradiction or denial of something, or the operation of inverting the truth value in logic.

UI

An abbreviation often standing for "User Interface," which refers to the means by which a user interacts with a computer, website, or application.